S&P cuts, withdraws Wahoo Fitness

S&P said it lowered its ratings for Wahoo Fitness Acquisition LLC senior secured credit facilities to D from CCC- and CCC, respectively. The 2 recovery rating is unchanged, indicating substantial (70%-90%; rounded estimate 70%) recovery. At Wahoo’s request, S&P withdrew the ratings.

The downgrade follows Wahoo entering a forbearance pact with term loan and revolving credit facility lenders in anticipation of missing principal and interest payments due March 31, the agency said.

“In our view, this represents a default on the term loan and revolving credit facility because Wahoo will not meet its contractual obligation to pay principal and interest in a timely manner. As of Jan. 31, 2023, Wahoo had fully drawn its $30 million revolver and had $5.9 million cash on hand,” S&P said in a press release.

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